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Laid off while out of disability Tennessee

01-19-2009, 10:11 AM

This is a recap of another post. Changed my username because before, it was my email address.

My initial post:
Laid off while on disability - TN Tennessee

Hi,
I was recently laid off as part of a company wide layoff. I know this is legal and have no issues with this. What concerns me is I had long term disability insurance at this company that guaranteed 66% of my salary. When I asked about this on our phone conversation where they told me, they said that only applied if I was "employed".

I do understand that but I am currently out of disability so figure the benefit of the long term should continue to apply.

They are being generous, by letting my laid off date, be my "return to work" date, if that is in February like it is planned. I know they aren't being generous out of the good nature of their hearts but feel they are letting me "stay on" for a month hoping to avoid any issues. They did say if my "return to work" was not in February, they would have to re-evaluate the decision to keep me on.

I don't know who to turn to and ask questions. I could understand if I was disabled during the continuance of my insurance which is 3 months from the date of termination, but I was out of disability for months prior to this layoff.

I don't feel I can get straight answers from the company. I got a letter just last week saying I was now on their "disability plan" and that job status would not change until 12 months after I went out, which would be 10/30/2009. I understand this letter was written prior to the layoff annoucements.

I'm in TN...any suggestions would be most appreciated! I'm a single mom livign paycheck to paycheck. This was my 3rd back surgery and the only reason I am concerned is that it is still very painful to sit and I did computing, so sitting was my job! I have degenerative disc disease and if I'm to go our on disability, having this insurance is a way to tide you over until you are offically approved by Social Security. I'm just trying to cover all my bases. Help!

A reply from cbg:
Were you currently out on disability at the time of the layoff? Or were you anticipating going out in future? It makes a difference.

Followup by me:
I have been out on disability since 10/30/2008.

I did get signed in and read my long term disability book last night and it does say I have that allowance after being out of work for 6 months. If thats the case, I would have to still be employed until May? Or would the fact I had it when I was employed make it still available to me?

Another reply by cbg:
Given that you are already collecting benefits, whether they will continue after your employment ends is a matter of the disability policy, not of the law. The law in your state (or most states) does not address this directly.

I have not read your policy so I can't say what it requires. What I can tell you is that in 30 years of administering employer-sponsored benefits, I have never seen and only once heard of a policy where benefits ended with your employment.

Had you not already been collecting benefits, your employment status would have had more of an effect. If your disability began after your employment ended it would be unlikely that you would be able to collect. Under the circumstances, though, the odds are in your favor.

And now, my current question:
cbg, who I would I ask those questions too? I called my corporate benefit manager and they told me I'd have to go to my plant representative. I've sent an email, no reply yet. I would really like to pursue it as I don't want to go back too soon and cause issues with my back. Also, it's a catch 22, I can work and I feel I will have to have my next surgery sooner, or not work, and perhaps eliminate another back surgery altogether.

Comment

Under the law, she is required to provide you with a copy of the plan document on request.

Why don't you ask for a copy of the plan document and see for yourself what it says? That way, you'll have something in front of you that you can refer to when you talk to her.

Or, alternately, you can contact the insurance carrier and ask them.

If you get a copy of the plan document, and you want to post the section on eligibility here, we can help. The only thing is, a paragraph taken out of context can be misleading, so you'd have to post the ENTIRE section on eligiblity.

The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

Comment

I was able to download a PDF copy of our Long Term Disability manual from our company benefit website. One issue might be I am not considered "long term" yet:

SCHEDULE OF BENEFITS
Policy Effective Date: January 1, 2003
Policy Anniversary Date: January 1
Revised and Reissued Date: January 1, 2005
Policy Number: LK-960060
Eligible Class Definition: All active, Full-time salaried Employees of the Employer.
Eligibility Waiting Period
If you were hired on or before
the Policy Effective Date: No Waiting Period
If you were hired after
the Policy Effective Date: No Waiting Period
Benefit Waiting Period The later of 180 days or the expiration of salary continuation
Disability Benefit The lesser of 66.67% of your monthly Covered Earnings rounded to
the nearest dollar or your Maximum Disability Benefit, reduced by
any Other Income Benefits.
"Other Income Benefits" means any benefits listed in the Other Income Benefits provision that you receive on
your own behalf.
Maximum Disability Benefit $20,000 per month
Minimum Disability Benefit The lesser of $100 or 10% of your Monthly Benefit prior to any
reductions for Other Income Benefits.
Maximum Benefit Period
Age When Disability Begins Maximum Benefit Period
Age 62 or under Your 65th birthday or the date the 42nd Monthly Benefit is payable, if later.
Age 63 The date the 36th Monthly Benefit is payable.
Age 64 The date the 30th Monthly Benefit is payable.
Age 65 The date the 24th Monthly Benefit is payable.
Age 66 The date the 21st Monthly Benefit is payable.
Age 67 The date the 18th Monthly Benefit is payable.
Age 68 The date the 15th Monthly Benefit is payable.
Age 69 or older The date the 12th Monthly Benefit is payable.

WHO IS ELIGIBLE
If you qualify under the Class Definition shown in the Schedule of Benefits you are eligible for coverage
under the Policy on the Policy Effective Date, or the day after you complete the Eligibility Waiting Period, if
later. The Eligibility Waiting Period is the period of time you must be in Active Service to be eligible for
coverage. Your Eligibility Waiting Period will be extended by the number of days you are not in Active
Service.

Except as noted in the Reinstatement Provision, if you terminate your coverage and later wish to reapply, or if
you are a former Employee who is rehired, you must satisfy a new Eligibility Waiting Period. You are not
required to satisfy a new Eligibility Waiting Period if your insurance ends because you no longer qualify
under your Class Definition, but you continue to be employed, and within one year you qualify again.
TL-004710

WHEN COVERAGE BEGINS
You will be insured on the date you become eligible, if you are not required to contribute to the cost of this
insurance.
If you are not in Active Service on the date your insurance would otherwise be effective, it will be effective
on the date you return to any occupation for your Employer on a Full-time basis.
TL-004712

WHEN COVERAGE ENDS
Your insurance ends on the earliest of the dates below.
1. The date you are eligible for coverage under a plan intended to replace this coverage.
2. The date the Policy is terminated.
3. The date you no longer qualify under your Class Definition.
4. The day after the period for which premiums are paid.
5. The date you are no longer in Active Service.
TL-004714

WHEN COVERAGE CONTINUES
Your Disability Insurance will continue if your Active Service ends because of a Disability for which benefits under the Policy are or may become payable. Your premiums will be waived while Disability Benefits are payable. If you do not return to Active Service, this insurance ends when your Disability ends or when benefits are no longer payable, whichever occurs first.
TL-004716

DESCRIPTION OF BENEFITS
WHAT IS COVERED
Disability Benefits
If you become Disabled, as we define the term in the Definitions section, while you are covered under the Policy, we will pay you Disability Benefits. After you are Disabled, you must satisfy the Benefit Waiting Period and be under the Appropriate Care of a Physician. Also, we ask you to provide us with satisfactory proof of your Disability, at your expense, before benefits will be paid.
We will require continued proof of your Disability for benefits to continue.

Comment

I find this interesting, but what if I'm in the period that is considered "Short Term Disability"?

Your Disability Insurance will continue if your Active Service ends because of a Disability for which benefits
under the Policy are or may become payable. Your premiums will be waived while Disability Benefits are
payable. If you do not return to Active Service, this insurance ends when your Disability ends or when
benefits are no longer payable, whichever occurs first.

Comment

You policy says your coverage can end the date you are no longer in Active Service. I know it also says: Your Disability Insurance will continue if your Active Service ends because of a Disability for which benefits under the Policy are or may become payable.

However, your Active Service did not end because of a disability for which benefits under the policy are or maybe become payable. Your Active Service ended due to a layoff.

Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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